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Your starting guide on price action and Japanese candlesticks
Inside the realm of technical analysis, there is only one king. His name is “Price Action.” This is the first subject a beginner trader should need to master.
Simply put, price action is the movement of the price in relation to time. All the transactions within an instrument create a summarized chart, and this is the most important indicator that we have to analyze.
The History of Japanese Candlesticks
This particular chart type dates back to the 1700s in Japan. Munehisa Homma, a Japanese businessman, used the candlestick charts to track the price of rice. This method gave him an edge in his sector because he can map periods of fear and greed in the rice market.
Single candlesticks, according to their shape and size, can have “nicknames.” Most of these names came back from the Homma’s era in their original Japanese, and many others have been translated into English.
The candlestick pattern chart has been brought to the West by Steve Nison in 1989. This chart pattern replaced, in many cases, the bar pattern chart that was used in the West until that time.
